How to Enable GST in Tally Prime and Create a GST Invoice

Step 1: Enable GST for your company

1. Open your company and press F11 (Features).
2. Set Enable Goods and Services Tax (GST) to Yes.
3. In the GST details screen, enter your State, Registration type (Regular or Composition), GSTIN/UIN and Applicable from date.
4. Set the periodicity of GSTR-1 and any e-Invoice or e-Way Bill applicability that applies to you.
5. Press Ctrl+A to save.

Step 2: Create GST tax ledgers

Create these ledgers under the group Duties & Taxes, with Type of duty/tax set to GST:

Ledger name	Tax type	Used for
CGST	Central Tax	Sales and purchases within your state
SGST (or UTGST)	State Tax	Sales and purchases within your state
IGST	Integrated Tax	Sales and purchases with other states

Step 3: Set GST rates and HSN/SAC

For each stock item (or service ledger), open GST Rate & Related Details and enter the HSN/SAC code, taxability (Taxable, Exempt, Nil rated) and the GST rate, for example 18%. You can also set rates at the stock group level so items inherit them.

Step 4: Add GSTIN to customer and supplier ledgers

In each party ledger under Sundry Debtors or Sundry Creditors, enter the State, Registration type and GSTIN/UIN. Tally Prime uses the state to decide between CGST+SGST and IGST.

Step 5: Record a GST sales invoice

1. Press F8 to open a Sales voucher.
2. Select the party and the sales ledger.
3. Add stock items with quantity and rate.
4. Select the CGST and SGST (or IGST) ledgers; Tally Prime calculates the tax.
5. Press Ctrl+A to save, then Alt+P to print.

Common GST mistakes to avoid

• Wrong state on the party ledger, which charges IGST instead of CGST+SGST.
• Missing HSN/SAC codes, which make returns incomplete.
• Tax ledgers created under the wrong group.